Co-ownership in difficulty: state of deficiency

Verified 15 April 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Where the condominium union is unable to ensure the conservation of the building or the safety and health of the occupants, owing to serious financial (or management) difficulties and the importance of the work to be carried out, the condominium may be declared to be in a state of deficiency. Who can pronounce the state of deficiency? Can the building be expropriated, i.e. seized? We present the regulations to you.

For a condominium to be declared in a state of deficiency, the joint owners' union must be unable to ensure the preservation of the building or the safety and health of the occupants. This is the case when the syndicate of the co-owners faces serious financial (or management) difficulties and because of the importance of the work to be carried out.

The opening of an infringement procedure may be requested by:

  • Mayor of the municipality in whose territory the building is located
  • Or president of the public establishment for intercommunal cooperation (EPCI) responsible for housing, in the same territory.

With the agreement of the mayor or the president of the EPCI responsible for housing, the request may also be made by:

It's the president of the judicial tribunal the location of the building which decides on the application.

He appoint one or more experts responsible for reporting on the situation of the condominium syndicate.

The President of the Judicial Tribunal shall fix the time limit within which the expert shall submit his report. The maximum delay 3 months, is renewable once.

The expert shall be responsible for establishing the following points:

  • Extent of financial imbalance of the co-owners' union
  • Distribution of debts by co-owners
  • Nature and condition of common areas
  • Importance of work to ensure the health and safety of the inhabitants

Attached to his report, the expert shall also report disturbances in the private parts affecting the safety and health of persons. The absence of that annex or its content may not be invoked to challenge the validity of the procedure or the conclusions of the expert's report.

Warning  

The existence of serious financial or management difficulties shall be presumed established when the accounts of the syndicate of co-owners (estimated budget, expenses, etc. ) were not communicated to the expert within 2 months upon receipt by the syndicate of the co-owners of a request to that effect.

The conclusions of the expert's report, as well as the order of the President of the Judicial Tribunal which decided on the expert's report, must be notified to the following persons:

  • Union of co-owners
  • Co-owners
  • Provisional administrator, if appointed
  • Mayor of the municipality
  • President of the EPCI responsible for housing
  • Prefect.

The effect of the declaration of absence shall be to enable an investigation procedure to be initiatedexpropriation.

Also, when the procedure of deficiency has been taken at the initiative of the mayor or president of the EPCI a simplified project for public procurement is responsible for housing presented for information at 1re deliberative assembly (municipal council or EPCI assembly) held after the request to initiate the waiting procedure.

This project may lead to one of the following actions:

  • Expropriation of common areas
  • Rehabilitation for Habitat (or Other Use)
  • Total or partial demolition of the building.

Provision must be made for a summary evaluation of the cost of the project and a plan to relocate the occupants concerned.

The project specifies the public community or organization for which the expropriation is sought.

Depending on the conclusions of the expert report, and after hearing the persons concerned, the President of the Judicial Tribunal may to declare the state of deficiency of the condominium union.

Reminder

The existence of serious financial or management difficulties shall be presumed established when the accounts of the syndicate of co-owners (estimated budget, expenses, etc. ) were not communicated to the expert within 2 months upon receipt by the syndicate of the co-owners of a request to that effect.

In the judgment pronouncing the state of deficiency, the President of the Judicial Tribunal may appoint a provisional administrator to prepare for the liquidation of the debts of the condominium and to ensure urgent security interventions.

Please note

For the purposes of settling debts, the legal personality of the syndicate of co-owners shall continue until the President of the Judicial Tribunal terminates the assignment of the interim administrator.

The judgment declaring the state of deficiency shall be notified to all of the following persons:

  • Union of co-owners
  • Co-owners
  • Provisional administrator, if one exists
  • Author of referral
  • Housing allowance paying agency
  • Mayor of the municipality or president of the EPCI responsible for housing
  • Prefect.

FYI  

if the address of one or more recipients is not known, or if these persons are not identifiable, the notification shall be made by posting to the town hall and on the façade of the building.

Yes, the declaration of the state of deficiency can be challenged within 2 months of notification of the judgment of failure to act.

The judgment may be challenged by the syndicate of the co-owners or the liquidator.

Please note

The appointment of the interim administrator may also be challenged under the same conditions.

The declaration of the state of deficiency leads to the adaptation of the public procurement project and the intervention of the prefect.

Public consultation

During the 1re the mayor or the president of the EPCI (responsible for housing) approves the modified public acquisition project following the decision to declare the state of deficiency.

This draft takes into account the observations of the deliberative assembly (during which the proposed acquisition was presented) and the conclusions of the expert.

During minimum 1 month, the amended draft shall be made available to the public, which may make comments.

Prefect's order

The state of deficiency having been declared, expropriation, in other words, the seizure of the immovable may be decided in favor of:

  • Commune
  • EPCI competent in the field of housing
  • Operator responsible for maintaining and ensuring the preservation of goods of collective interest
  • Organization responsible for the management of expropriated common areas
  • Organization with a vocation to do so
  • Concessionaire of a development operation
  • A building business in which the government holds the majority of the capital.

Once the public consultation period has passed, the prefect issues an order who:

  • Declares the public utility of the proposed public acquisition and determines the list of buildings or parts of buildings, common parts, parcels or rights in rem in immovable property to be expropriated and the identity of the owners of these rights in rem
  • Declares transferable the immovable or parts of immovable property, common areas, parcels or rights in rem in immovable property
  • Indicates the public authority or body on whose behalf the expropriation is being pursued
  • Sets the amount of the interim benefit awarded to the owner or co-owners or unit-holders, and holders of commercial and professional leases
  • Sets the date on which he can take possession of the goods. This take-over takes place at least 2 months from the publication of the order declaring the public utility of the project.

This decree is published in the administrative acts of the department and posted in the town hall of the location of the property.

The expropriator shall notify the order owners and holders of rights in immovable property.

Within one month of taking possession, the expropriator must continue the expropriation procedure under the conditions of expropriation for reasons of public utility.

The expropriation allowance is also fixed under the terms of an expropriation in the public interest. The value of the property shall be assessed by taking into account the amount of the works necessary for the conservation of the building provided for in the expert's report or those prescribed for the dwellings which have been, inter alia, the subject of a health order.

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  • Telephone administrative information - Allo Public Service

    For more information on this topic, you can contact Allô Service Public.

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